Hutchison Telecommunications International's Ltd (HTIL) Indian mobile-phone unit will merge with rival BPL Communications to create the country's third-largest operator, according to sources close to the companies.
News of the development came a day after India's Essar Group, which holds 30.4 per cent of Hutchison Max Telecom, agreed to acquire 67 per cent of BPL for US$1 billion, pending regulatory approval.
The merger is designed to shore up Hutchison Max Telecom's market position as it prepares for a listing on the Mumbai stock exchange next year. Currently the country's fourth largest carrier with 8.44 million subscribers, the merger with BPL will propel its customer base through the 11 million mark.
'We have never been shy about our intention to expand in India,' an HTIL source said yesterday, adding that the company had been 'in all sorts of discussions with Essar Group'.
BPL operates in four markets: Mumbai; Maharashtra and Goa; Tamil Nadu and Kerala. Hutchison Max Telecom, meanwhile, has a presence in 13 markets through subsidiary Hutchison Essar and four other mobile companies.
Because the two companies overlap in just the Mumbai market, the combined entity would extend its presence to 16 of the 23 mobile markets created by government.